BTC USD 24,452.7 Gold USD 1,801.89
Time now: Jun 1, 12:00 AM

Libertex Weekly Financial Markets Review

Libertex

Fun Poster
Messages
215
Joined
Mar 28, 2017
Messages
215
Reaction score
0
Points
10
Moderna (MRNA) Stock Forecast

Moderna went from a biotech company suffering losses for a few years to bringing in billions in revenue in just a few months thanks to its COVID-19 vaccine. Its high rise to popularity on the Nasdaq stock exchange makes it a favourite among many investors who are considering it for the long term.

Learn why Moderna is currently among the most popular stocks, what affects its stock price, and what is the Moderna stock forecast according to the experts. If you're looking for longer-term information, you can also check out the price predictions for the years beyond 2026.

About Moderna (MRNA) Stock

Moderna Inc. is a US pharmaceutical and biotechnology company based in Cambridge, Massachusetts. It specialises in RNA therapeutics, with a primary focus on mRNA vaccines. These vaccines use messenger RNA, or mRNA, which is a copy of a molecule, to produce an immune response in the body.

Currently, the biotech company has only one commercial product, namely the Moderna COVID-19 vaccine. Since its inception, the company has worked towards building a leading mRNA technology platform, created infrastructure to accelerate drug discovery and developed an expanding pipeline to create a new generation of transformative medicines for patients.

Moderna is listed on the Nasdaq stock exchange as MRNA, and as of 20 December 2021, its stock price is $294.80. This is a very high price for the stock considering many leading and well-known publicly-traded companies have stock prices far below this. It would not be unfair to primarily attribute this high price to Moderna's coronavirus vaccine.

What Affects Moderna (MRNA) Stock Price

Knowing the factors that drive the price of MRNA is essential if you are considering buying, selling, or holding Moderna stock. So, what is the key performance indicator when evaluating Moderna stock forecast?

For Moderna, the primary source of revenue as of late has been its COVID-19 vaccine, which has been the main driver behind Moderna's high stock price on the Nasdaq stock exchange. Reliance on one commercial product for revenue is not very unusual for a large company, considering that Moderna was founded in 2010. In 2018, it had its IPO, where it set the record for the largest IPO in biotech history. The company was not even expected to roll out a commercial product using its revolutionary mRNA technology, but it surprised the world with the accelerated development and manufacture of the Moderna vaccine. For now, the company's stock price is closely linked to the coronavirus vaccine, supply and demand for it, and its relevance in the future.

In addition to this, most Moderna investors have confidence in the claim that mRNA-based vaccines will drastically raise the antibodies in humans. However, the first human trial results from Moderna's experimental seasonal flu shot failed to meet expectations, signalling that mRNA-based vaccines do not always turn the body into an antibody-making machine. This led to a 14% drop in the company's stock price in early December 2021.

As such, it can be concluded that apart from the circumstances surrounding the COVID-19 pandemic, the results and efficacy of any product that Moderna rolls out will directly affect its stock price.

Moderna Stock Price in the Past

moderna-mrna-stock-forecast-1.jpg


As Moderna went public in 2018, there is only 3 years' worth of data to analyse its past performance. The company went from zero product revenue and a net loss to billions in revenue in just a few months. In 2018, the year-open price was $18.60, while the year close price was $15.27, with an average price of $16.4338.

The following year saw some improvement in the performance on the stock exchange, with the year-open price at $15.33, whereas the year close price was $19.56, which was a 28.09% increase over 2018. The average price for 2019 was $18.1192.

It was in 2020 when things took a drastically positive turn for Moderna and its financials. Moderna was among the leading manufacturers of a COVID-19 vaccine. This propelled the biotech company into mass popularity, with its stock rising to $104.47 at year's end compared to only $19.23 when it started the year. This was an annual change of 434.10%, a game-changer for Moderna.

Moderna Stock Technical Analysis

When considering buying, selling or holding Moderna stock, it's essential to consider the most technical of indicators that determine the stock's status at any given time. These indicators can be studied by conducting a technical analysis of the stock.

moderna-mrna-stock-forecast-2.jpg


The charts above present the overall summary of Moderna stock price comprising all the technical indicators (top) and the buy/sell condition determined by the oscillators (left) and moving averages (right). According to these charts, there is currently buying sentiment. The moving averages are also pointing towards buying Moderna stock right now, and the oscillators are painting the same picture, as well.

This can be attributed to the fact that vaccination is a vital and regularly discussed necessity in the world right now. Coupled with this are the new variants of the COVID-19 virus (Omicron being the latest of them all), which are making the vaccines a more important and attractive investment than ever.

As such, there is no selling pressure at the moment, and most, if not all, technical indicators paint a positive picture for Moderna shares.

Moderna Stock Forecast for 2022 by Experts

While the last two years have proved phenomenal for Moderna, investors are now starting to worry about future orders for the vaccine. Let's explore what the expert opinions regarding Moderna stock forecasts are.

Interestingly, many analysts think that COVID-19 will transition from being pandemic to endemic, with regular (perhaps annual) booster shots necessary for everyone. This means that the company would remain highly relevant, and its stocks would interest investors to a great extent, as well.

When evaluating the future of Moderna, most analysts consider two dimensions. The first is the longevity of the virus as well as the emergence of new variants. Any new variant, such as the current Omicron variant, makes Moderna attractive for investors as the entire world looks to Moderna and a few other biotech companies for a prompt solution.

On the other hand, experts also look at competition from other companies such as Pfizer and AstraZeneca since their rise in popularity could hurt the chances of Moderna's stock rising further.

With such market uncertainty regarding the pandemic and the relevance of vaccines, many experts are unable to suggest a number for Moderna's estimated future stock price.

Short-Term Moderna (MRNA) Price Prediction for 2022

Here are predictions from some of the most renowned traders and technical publications about the price of Moderna in 2022.

Wallet Investor

According to Wallet Investor, Moderna could end 2022 at a price of $379.241. estimates suggest bullish movement throughout the year, with the price constantly rising.

Long Forecast

Although Long Forecast has a similar view regarding Moderna's stock price, it does expect Moderna to perform far better than many other assets. It predicts that the year would start at a minimum of $299 and could end the year anywhere close to $428. If these figures seem too optimistic to you, remember that the Omicron variant has just emerged, and Moderna has already put out a vaccine that it claims works efficiently against the new variant.

Moderna Price Forecast for 2023-2025

While the pandemic's longevity and the need for vaccines are still being heavily studied and debated, Moderna stock predictions for 2023 to 2025 are extremely bright.

According to Wallet Investor, the price is expected to keep growing, although the rate at which it is likely to grow will fluctuate throughout the mentioned time period. In fact, Wallet Investor has forecasted that Moderna's price may go as high as $702.107 by the end of 2025.

Such confidence in the appreciation of the company can be attributed to the fact that the COVID-19 vaccination is still a significant health issue worldwide, and precautions against the Omicron variant are already being taken seriously.

Long-Term Moderna Stock Price Prediction 2026-2030

Making predictions so far ahead in time can be tricky because stock prices rise and drop quite often within a year for estimates more than 5 years out to be accurate. However, it's still important to make these estimates to potentially reduce the risk of any long-term investments.

According to CoinPriceForecast, Moderna stocks could hit a value of $1,348 by 2030, which is an upward change of 357% from the current price. Even for the previous years, the price is expected to rise gradually. The market sentiment is so positive for this company that analysts at Nasdaq are discussing the possibility of Moderna becoming a trillion-dollar company by 2030.

Conclusion

There is absolutely no doubt that Moderna's coronavirus vaccine made its stock a big pandemic winner. However, the question remains whether Moderna will be able to continue this run once the pandemic has subsided. And despite all the forecasts and expert opinions, its relevance in the industry beyond COVID-19 will eventually determine the future of its stock's performance.

If you're inexperienced in trading or simply want to try your hands at stocks CFDs before risking any real money, you can explore multiple options with a demo account at Libertex. Not only will it let you practice in a simulated environment, but it will also suggest expert strategies to you along the way.
 
Sponsored Post

Libertex

Fun Poster
Messages
215
Joined
Mar 28, 2017
Messages
215
Reaction score
0
Points
10
Ford (F) Stock Forecast

From its much-anticipated new line of electric trucks, the F-150 Lightning, to its partnership with an autonomous driving startup, Ford has major plans for 2022. As competitors faced continued shortages in November 2021, Ford's sales increased, and in December 2021, the company reported selling the highest number of vehicles in the US for three consecutive months.

Read on to find expert predictions for Ford's stock in 2022 and the company's potential future growth. We'll also briefly explain the factors that can impact F shares and discuss the historical performance of the automaker on the stock exchange before analysing the Ford stock forecast for the next few years.

About Ford (F) Stock

Founded by Henry Ford in June 1903, Ford Motor Company is an American multinational automobile manufacturer headquartered in Dearborn, Michigan, in the United States. The automaker sells commercial vehicles and automobiles under the Ford brand, while its luxury vehicles are sold under its luxury brand, Lincoln. To gauge how powerful and well-renowned this company is, consider the fact that Ford either owns or has previously owned, partially or fully, the following automobile brands: Troller, Aston Martin, Jiangling Motors, Jaguar, Land Rover and Volvo.

Ford is celebrated for introducing methods for large-scale manufacturing of vehicles and management of an industrial workforce. This was done using intelligently engineered manufacturing sequences that exemplify moving assembly lines. These methods have been viewed so highly across the globe that they have now come to represent the idea of Fordism.

As of 14 January 2022, Ford stock is worth $25.19. Listed on the New York Stock Exchange (NYSE), it has a market capitalisation of $100.6 billion.

What Affects Ford (F) Stock Price

While there are many reliable sources to get information regarding the past, current and expected performance of Ford on the stock exchange, just knowing these numbers is not enough. In order to develop a strong and well-calculated strategy for your trading or investment moves, it's essential to know the factors that affect the price of Ford's stock, and eventually, the Ford stock forecast.

At present, the notable production and sale of vehicles by the automotive maker can be quoted as the reason for growing investor confidence in Ford. Since the company has been thetop-selling US automaker for the past three months, the price of its shares has increased. This indicates that inventory is a key factor in determining market sentiment about Ford. That being said, the production and sale of vehicles by competitors can adversely affect F stock.

Another major factor driving the price of Ford in the future will be its electric vehicles. As the world increasingly turns towards electric cars, Ford is expected to benefit from its all-electric version of the F-150, the Ford Lightning, which is set to launch in spring 2022 and has already accumulated over 160,000 pre-orders.

Interest rates also impact the stock because consumers factor in the cost of financing, which eventually affects sales. In early December 2021, Ford's stock price was down about 3.9% due to the increased likelihood of higher interest rates.

Ford Stock Price in the Past

The past performance of Ford on the stock exchange is not, in any way, an indicator of its future performance. However, knowing how F shares have fared in the past few years can help make less risky and more knowledgeable decisions with your money when considering Ford stock predictions.

The chart below shows the prices of Ford common stock for the past 5 years.

ford-stock-forecast-1.jpg


As evident from the graph, the years 2020 and 2021 appear to be the most interesting for the company. While there were fluctuations in the prices even before 2020, it was this year when the prices severely dipped to a low of $4.24 due to the COVID-19 pandemic and its impact on the global supply chain and automotive manufacturing.

That being said, Ford exhibited remarkable recovery after this bearish movement and went on to achieve values it had not ever seen before. The highest price of $21.45 was recorded on 12 July 2021.

Apart from these, a few useful statistics about its performance in the last year are listed below:
  • Ford's 52-week high of $21.49 occurred on 10 December 2021.
  • Its 52-week low of $8.43 occurred on 4 January 2021.

Ford Stock Technical Analysis

According to the technical analysis conducted by TradingView, at the time of writing this article, Ford's stock is in a neutral position. The oscillators and the moving averages both indicate neutrality. While most oscillators, including the Relative Strength Index (RSI) and Bull Bear Power, are neutral, the moving averages show an interesting situation where half the indicators are pointing towards Buy while the rest are hinting at a Sell rating. The overall effect, however, is determined to be neutral.

This means that, at present, the technical analysis shows neither buying nor selling pressure, and those interested in this stock should either hold it if they already own it or wait before buying it. Conclusively, no bullish or bearish movements are expected in the near future.

ford-stock-forecast-2.jpg


When it comes to the end of December 2021 and the start of January 2022, the oscillators are suggesting slight selling pressure, but the moving averages are indicating a Strong Buy. Thus, the overall summary gives the green light to those interested in buying Ford stock in the next 30 days.

Ford Stock Forecast for 2022 by Experts

Before delving into Ford stock predictions for the upcoming few months or years, let's consider expert opinions and learn what industry analysts think F stock will be worth in the near future.

Brian Johnson

Citing tight inventories as one of the car price drivers, Barclays analyst Brian Johnson expects automakers — not auto suppliers — to achieve good margins from car sales in 2022. Hence, Johnson increased his target price for Ford stock in 2022 from $18 to $23, bringing in interested investors, too.

Colin Langan

The renowned Wells Fargo automotive and mobility analyst Colin Langan also raised his bank's price target for F - from $19 to $23. Among the reasons he cited for this move is the expected ease in supply chain issues that have hampered automobile production the past year.

Moreover, Ford's previously held a 12 percent stake in Rivian, an electric vehicle startup, and its share of Argo AI, a startup based on self-driving, autonomous cars, are also forecasted to attract investments worldwide.

Short-Term Ford (F) Price Prediction for 2022

As for Ford's current economic environment and performance, the following are among some of the most well-grounded Ford stock predictions for 2022.

Long Forecast

According to estimates by Long Forecast, the first quarter of 2022 isn't likely to bring any improvement in Ford shares. In fact, the price is predicted to slightly drop from its current value. However, bullish movement is expected in the remaining months of the year, with the price expected to go to a high of $25.97.

CoinPriceForecast

CoinPriceForecast has exhibited strong confidence in the earning potential of Ford in 2022. It has some of the most optimistic predictions for Ford's performance in FY22. It estimates that by the middle of the year, F shares of Ford could be worth $25.48, whereas the year could end with Ford stock price as high as $28.56.

Ford Price Forecast for 2023-2025

Analysis of the F stock forecast for 2023, 2024 and 2025 suggests that Ford stock will experience both bearish and bullish movements in the future. There is far too much fluctuation in the predictions, as estimated by Wallet Investor, for one to guess with any degree of confidence whether Ford stock will be higher, lower or nearly the same compared to its current price.

Long-Term Ford Stock Price Prediction for 2026-2030

With expectations such as Ford's annual electric vehicle sales to be close to 1.24 million units by fiscal year 2030, predictions place the expected price of Ford stock for 2026 between $57.43 and $93.66. According to AI Pickup, the period of 2026 to 2030 can see the price of Ford shares ranging from $43.29 to $45.97. Interestingly, this forecast is very conservative and does not expect Ford to bring in the kind of profits that most other traders, brokers and exchanges think it will.

While these predictions paint a very promising future for Ford in 2026 and beyond, be cognizant of the fact that a Ford stock forecast so far in advance might not be beneficial at all considering their volatile nature and dependence on a number of internal and external factors.

Conclusion

In light of the predictions and driving factors behind its price, experts estimate that Ford stock will increase in the future. Not only is global automotive manufacturing accelerating, but supply chain issues are also easing and will further improve in 2022. These, coupled with the fact that Ford plans to release new models of its vehicles and is actively participating in the electric vehicles and autonomous driving race, the prospects appear very bright for the company at the moment.

That being said, stock prices are more often than not characterised by volatility which must be taken into account when making any decision to trade or invest.

You can begin by using a simulated and controlled environment to test out different strategies and plans and observe how experts are handling their CFD portfolios. To get started, create a demo account at a trading platform Libertex, which is offering the aforementioned facilities.
 

Libertex

Fun Poster
Messages
215
Joined
Mar 28, 2017
Messages
215
Reaction score
0
Points
10
Technical analysis: what separates the pros from the schmoes

What is technical analysis?

In essence, technical analysis hinges on the study of past price movements and trends to predict future market developments. It first emerged as a tradition in 19th century Japan, where rice merchants used candlestick charts to anticipate price changes in their staple commodity. Fast forward to the present day, and it has become a must-have tool in the arsenal of virtually every serious day trader and even some long-term investors. Since its humble beginnings, technical analysis has developed significantly as a field and now comprises a variety of oscillators, patterns, trend indicators and more.

Proponents of technical analysis say it is the only research tool one needs to succeed as a trader or investor since the market 'prices in' all relevant fundamental news and developments anyway. Whatever your position on the debate, there's no denying that technical analysis is an extremely useful string to one's bow, especially when searching for entry and exit points. Today, we're going to look at some of the most popular in-chart indicators available on the Libertex platform and how to use them to your advantage!

Relative Strength Index

Let's start with perhaps the quintessential indicator for selecting when to open or close a position: the Relative Strength Index or RSI for short. This is a momentum indicator that shows whether a market is overbought or oversold at any given moment. J. Welles Wilder Jr's seminal indicator is displayed as an oscillator (a line graph that moves between two extremes), and its potential values range from 0 to 100. It's generally understood that any value below about 30 suggests that the market is oversold and a rise to the upside is close at hand. On the contrary, a reading above 70 typically indicates an overbought market, which would mean that a sell-off could be on the cards. To overlay the RSI on a chart in the Libertex platform, all you need to do is follow these simple steps:

First, enter full-screen mode on your chosen chart, then hover over the indicators tab as shown. After that, a dropdown menu should appear. Hover over the 'Oscillators' tab and then select 'Relative Strength Index' from the dropdown menu.

1_3.png


Once that's done, the RSI will appear at the bottom of the chart as shown below:

2.png


If we look at the first two red circles, we see that these low points on the RSI immediately precede significant moves to the upside. The last one marks where we stand currently, which would suggest that we are at or close to a local bottom.

Moving Average Convergence Divergence (MACD)

The MACD indicator is used to determine trend direction and, to a lesser extent, momentum. Beyond this, it can also provide a variety of different trade signals. Generally speaking, a security's price can be said to be in an upward phase any time the MACD is above zero. If the MACD is below zero, however, the instrument is considered to be in a bearish trend. Here's how to open it on the Libertex platform:

3_0.png


The indicator itself consists of two lines: the MACD line and the signal line, which moves more slowly. Should the MACD crosses below the signal line, this would indicate a falling price. If the MACD line crosses above the signal line, though, this means the price is on the rise. While the MACD can be used to pick entry points in the same way as the RSI, its consideration of actual price as opposed to just buying and selling means that it can be used in conjunction with other indicators like the RSI to assess whether a given trend is likely to continue or not.

To see an example of this in action, let's see that same TSLA chart again with the MACD overlaid below:

4.png


Look closely at the green circles. These represent points where the MACD and signal line cross. Notice how a significant move to the downside follows each crossover? Sometimes the downtrend has already begun, but picking up on the trend reversal early and closing out any long positions/opening short positions upon crossover would have undoubtedly saved/made you a decent amount of money.

Learn with Libertex

This was the first in a series of technical analysis guides that will help you make the most of the Libertex app's in-chart technical analysis tools. Tune in for a closer look at two more key indicators that all successful traders know and use to their advantage. In the meantime, try out some of these new techniques on your Libertex demo account and see for yourself how useful they can be in anticipating price movements.
 

Libertex

Fun Poster
Messages
215
Joined
Mar 28, 2017
Messages
215
Reaction score
0
Points
10
Alibaba (BABA) Stock Forecast

Alibaba is one of the world's largest online commerce companies. In 2013, it recorded $5.78 billion in sales during its 11.11 shopping event. The Chinese company is an international B2B platform that connects suppliers and buyers worldwide in one place. Just recently, Alibaba announced that the gross merchandise volume (GMV) from the 11-day sale reached up to 540.3 billion yuan or $84.54 billion.

Alibaba's stock has been rapidly fluctuating for some weeks now. We'll take a closer look into this and include the Alibaba stock forecast for 2022 and beyond.

About Alibaba (BABA) Stock

Alibaba Group Holding Limited or Alibaba is a giantChinese multinational technology company founded in June 1999. Since then, it's been connecting small-to-medium-sized businesses (SMBs) to professional business buyers. It's helped increase sales with their B2B optimised tools.

In 2014, its initial public offering (IPO) on the New York Stock Exchange raised up to $25 billion. This resulted in the company's market value reaching $231 billion, the largest IPO in world history by then. Recently, in 2020, it was included in the Top Five AI Companies.

Alibaba has three main sites: Taobao, Tmall and Alibaba.com. It offers millions of products under different categories like apparel, electronics, machinery, cloud, entertainment and more. Jack Ma and Joseph Tsai, the two founders of the company, are the two largest stakeholders.

Alibaba technology stock sustained solid growth for many years after its official IPO. It started with an initial $88 per share and trading at $92.70. At the time of writing (end of 2021), Alibaba's stock price is over $119.

What Affects the Alibaba (BABA) Stock Price

Here are some factors that can influence the price movement of BABA shares:
  • Business restrictions
  • An antitrust probe of the company from China's State Administration for Market Regulation (SAMR)
  • Change in management and operations
  • Investors/shareholders decisions
  • Trade conflict
  • Fines and restrictions
  • Political pressure
  • Company sales
  • News and events

Alibaba Stock Price in the Past

alibaba-stock-forecast-1.jpg


We're starting from a low stock price in 2016 because the company faced a shroud of scandal and controversy. But Alibaba quickly rose again after Taobao crested 580 million active monthly users and Tmall hit 500 million monthly users.

From an all-time low stock price, Alibaba's value started to rise in 2018. This is because the market liked Alibaba's spending spree that year. In 2018, the company spent over $41.6 billion on product development, sales and marketing, general administration and the cost of revenue. Many analysts consider this to be disciplined spending.

It continued to rise in 2019, the same year that Jack Ma stepped down as the head of the company. Its mobile user base reached 1.1 billion in the same year, and revenue grew by 42%. Its workforce reached 86,000 global workers, and the company delivered 57 million packages a year. Because of all of this, the stock price increased robustly.

alibaba-stock-forecast-2.jpg


In 2020, the value declined slightly as the State Administration for Market Regulation (SAMR) fined the company in China. Alibaba had to pay a $2.82 billion fine and end its exclusive deals. SAMR also imposed additional fines against the company over previously unapproved acquisitions. These anti-competitive practices and challenges placed analysts' expectations of 30% sales growth in uncertainty.

Unfortunately, in 2021, the company's stock price began to drop after its big issues with financial regulators and the Chinese government. Some analysts think many will avoid the stock until these issues are resolved. But in August, there was a 22% rise in quarterly profit and a 46% jump in revenues to $31.9 billion. Then the stock dropped again on 10 November after Chinese regulators announced new draft anti-monopoly rules for platforms like Alibaba.

Alibaba Stock Technical Analysis

alibaba-stock-forecast-3.jpg


For a one-month timeframe, the technical analysis from Trading View showed that overall, BABA shares showed a sell trend. This used the most popular technical indicators — Moving Averages, Oscillators and Pivots. The stock shows a strong sell trend based on MAs, while the oscillators indicate buying movement.

The price is below its 5, 20 & 50-day exponential moving averages, and it's being strongly bearish, moving downwards. These results show that the stock isn't doing quite well in the market. That's why there's a strong sell recommendation.

Alibaba Stock Forecast for 2022 by Experts

Analysts have made their predictions for BABA's stock price in 2022. Forecasting makes use of historical and recent data as well as technical indicators and tools. However, not all Alibaba stock forecasts are the same. Here are some from experts:

CNN Business

Analysts from CNN Business offer a 12-month forecast for investors with expected prices of $302.90 as the highest price, $199.95 as the median and $140.05 as the lowest. Based on these amounts, they've predicted that it will go up next year compared to the current price of Alibaba stock. The consensus among 56 analysts from the firm indicates a buy recommendation for the stock.

Long Forecast

The Economy Forecast Agency from Long Forecast expects to begin January 2022 with $107 and end it with $102. However, this would mean that they expect the price to drop in early 2021. This drop would also seem to continue until September 2022. The largest drop would be in February 2022, the price decreasing by over 20% from its current price.

Luckily, they also predicted Alibaba to gain control and go up again starting October 2022. Based on their BABA stock forecast, 2022 will end with a 9.02% price increase.

Wall Street Zen

From 16 analysts in Wall Street Zen, the predicted prices are shown above. Their maximum price forecast is at $407 with a great 253.91% price increase while the minimum is $200, still 73.91% greater than BABA's current price. Based on these prices, it's clear that they expect only great things for the stock in 2022.

Panda Forecast

The predicted target prices are shown with arrows to indicate their movements relative to their recent price. In this regard, analysts from Panda Forecast expect to welcome the new year with a price increase. It will continue to increase until March, the end of the first quarter, and then slightly drop in April. Overall, there are more expected price increases compared to drops.

The monthly volatility is also indicated, with February being the most volatile month and July being the least. At the end of the year, the price is expected to reach up to $187 with almost 12% volatility.

Wallet Investor

Like most analysts, those from the Wallet Investor predict Alibaba's January price to be greater than its current price. Based on the forecast, January will have over $124 with a 3.18% price increase. However, like with most analysts again, this will drop in February, too.

Throughout the year, the price is expected to fluctuate. The biggest positive change would be in October 2022 and the lowest drop in November. Fortunately, the price is expected to increase before the year ends.

Alibaba Price Forecast for 2023-2025

1111.png


It's predicted that Alibaba's price will increase in the following years, up to 2025. It started from a 43% increase from its current price in 2023, increasing up to 87% by 2025.

Long-TermAlibaba Stock Price Prediction 2026-2030

222.png


2026 is expected to start with a 117% increase in price to $234. The stock's price is then predicted to increase each year until ending 2030 with an over $300 market value.

Conclusion

Even if Alibaba has faced extreme challenges recently, Alibaba continues to show great potential. The positive Alibaba stock forecast of many analysts can support this. Moreover, Alibaba has a good record in the market and is a big company worldwide. Overall, the BABA stock would still be a good investment and trading asset. Please keep in mind that the stock market can be ruthless and react to world events very sharply.

If you're unsure, try using a demo account from Libertex. Not only can you invest in a controlled environment, but you can also use all the traditional trading tools and features and build your own portfolio. This way, you can practice CFD trading, investing, monitoring and analysing the market before entering real conditions.
 

Libertex

Fun Poster
Messages
215
Joined
Mar 28, 2017
Messages
215
Reaction score
0
Points
10
General Electric (GE) Stock Forecast

General Electric Company is an industrial business best known for power, aviation, financial services, renewable energy and healthcare. Its fame has increased through the awards it's won, such as Engineering Service Provider of the Year. It operates worldwide and has recently undergone a significant restructuring to offer more services.

In 2020, the company reported consolidated earnings on revenues of over $79 billion with over $5 billion from common shareholders. Just recently, in November 2021, it announced that it would split into three major companies. Where does that put future expected stock prices? Let's find out.

Overview: General Electric (GE) Stock

General Electric Co. is one of the oldest companies around, having been incorporated in 1892. The company emerged after the Thomson-Houston Company and the Edison General Electric Company merged. It started with Appliance and Lighting services.

Now, it operates as a finance, infrastructure and technology company worldwide. Its main expertise lies in the following segments:
  • Aviation
  • Capital
  • Healthcare
  • Power
  • Renewable energy
As of 14 January 2022, its current stock price is $103.16.

Factors Affecting the General Electric (GE) Stock Price

Here are some factors that can influence GE stock exchange price:
  • Workforce layoff
  • Change in management or operations
  • Investors sentiments
  • Inflation
  • Industry performance
  • Announcement of dividends

General Electric Stock Price in the Past

general-electric-stock-forecast-1.jpg


The stock market price started low in the 1960s and 1970s. During these years, GE was a pioneer in laser light technology and medical imaging. Over the next few years, the price started to fluctuate more until it peaked during 2000. In August 2000, it reached a closing price of $480, making it the most valuable company in the world.

However, its price drastically dropped in 2008, when the company encountered a crisis. In 2001, Welch left the company as a $130 billion conglomerate. But in 2008, GE stock dropped 42%, with the capital financial segment being the main reason. Although Warren Buffet invested $3 billion to stabilise and counter this fall, the crisis didn't end.

The following year, the company had to cut its yearly dividend from $1.24 to $0.82 and fell lower in 2010. The price continued to fluctuate through the following years and didn't drop until 2019.

general-electric-stock-forecast-2.jpg


The company had a good year in 2019. H. Lawrence Culp, the new chairman and CEO of the company, made significant improvements and helped the company recover slightly. By the end of 2019, the stock was up at about 50%. He reduced the $55 billion debt to half in 2020. Culp also sold unproductive stakes and subsidiaries.

However, in 2020, the COVID-19 pandemic significantly affected the company's steady price increase from 2019. On 15 May 2020, the GE stock price dropped to about $44, its lowest in two decades. GE's Aviation unit was the most affected since it had to lay off 10%-25% of its workforce in 2020.

Fortunately, the company began to recover in 2021. The stock price started to increase again. It even reached up to three digits in March until May and continued to drop and rise slightly afterwards.

General Electric Stock Technical Analysis

GE stock moved past a buy point on 9 November 2021. According to the MarketSmith Chart analysis, the relative strength line for the stock is lagging again. It also earned an IBD Composite Rating of 34 out of 99 with an RS Rating of 32, which means it outperformed 32% of all stocks for the past year.

general-electric-stock-forecast-3.jpg


Using pivot points and different indices, here's a summarised technical analysis of NYSE:GE stock:
  • A bullish alert on 17 December 2021, after a bearish swing on 16 December 2021.
  • The stock is at a short-term and long-term downward trend based on Moving Averages.
  • Bearish trend movement according to 200 DMA and Relative Strength Index.
  • With a Neutral score from Oscillators and a Sell from MAs, the GE stock is experiencing slight selling pressure.
  • Its strongest support and resistance levels are at 6, 13 and 104.

General Electric Stock Forecast for 2022 by Experts

Experts have done their own analysis on GE's performance for next year to create a GE stock price forecast. Although most of them predicted the stock price to increase in the following year, some say that it wouldn't happen so quickly. The one thing they have in common is that there'd be no massive drop in its price in 2022.

Coin Price Forecast

The forecasted stock price at the end of 2021 is $92.97. It'll then increase by 9% in early 2022, and its price is predicted to reach up to $95.86. In the second half of the year, $0.53 will be added, closing the year at $96.39.

Long Forecast

The Economy Forecast Agency predicts the GE stock price to end this year at $89. It's forecasted that the price will constantly decrease, peaking at a drop by 10.75% in February, not until September 2022, with a 3.23% increase. This would continue to go up until the end of the year with a $106 and 13.98% increase.

AI Pickup

According to Wall Street analysts, slight price growth is expected in January. After that, it'll continue to decline in the year's remaining months, dropping the highest in June 2022. Fortunately, the year will end with the price slightly increasing by 0.03% from its previous predicted price of $54.21.

LeoProphet

From LeoProphet's GE stock forecast, the price will increase rapidly but decrease as well in 2022. Its price will continue to go up until March, then drop until May, and continue to rise again. However, starting from November and until the end of the year, it's expected to drop to $97.57. It's also predicted that the highest market volatility will be experienced in February.

Wallet Investor

Wallet Investor analysts announced a prognosis for the GE stock price to have a stable upward movement in the next year. Although they only range from zero to about a 3% increase, no significant drop is expected. Not until December 2022 where the price will experience a 3.53% reduction.

Short-Term General Electric (GE) Price Prediction for 2022

Many analysts have stated their GE stock predictions in the coming year. Here's a summary of the forecasts for 2022 from five high ranking analysts based on Wall Street:

Новый проект (5).png


Most analysts gave a buy trading recommendation for the stock since they expect the price to go higher in 2022, indicated by the positive price change percentages. Most of them also predicted a three-digit stock price next year compared to the two-digit price now.

General Electric Price Forecast for 2023-2025

1ф.png


It's predicted that in the following years, from 2023 to 2025, GE stock price will continue to increase. This means that in 2025, the forecast increase is by 68% compared to the present price.

Long-Term General Electric Stock Price Prediction 2026-2030

234.png


Even in 2026, the price will continue to increase. This would continue until 2030 with a 155% increase from the current price. There's no hint of a drop in the forecast as theprice goes up throughout each year.

Conclusion

General Electric stock is starting to get its upward movement again after facing a crisis in 2008. Although they're in debt, it's clear that the company is taking measures to pay it off. The company is doing better now, even after the turbulent pandemic times.

Since it's an old company, this performance shows how the company is managed. Overall, it's a good choice for investment since most GE stock predictions show that its price is likely to increase. The stock is doing pretty well in the market, too, based on its share forecast. However, it's best to do your own research first and then try investing on your own.

If you're still uncertain, you can try a demo account from Libertex. Explore its various features designed to help you develop your skills for building your portfolio. With a demo account, you can practice trading stock CFDs first before you do so in real life.
 

Libertex

Fun Poster
Messages
215
Joined
Mar 28, 2017
Messages
215
Reaction score
0
Points
10
Technical analysis: harnessing Bollinger Bands

Technical analysis is a must-have skill for any self-respecting day trader. However, it is also an incredibly useful tool for long- and medium-term investors too. Following last week's look at the RSI and MACD oscillators, let's dive straight into some more technical analysis.

This time around, we'll be building on the trend oscillators studied a week ago with a close look at perhaps the most useful and versatile volatility indicator in existence: Bollinger Bands. Some of you may have never heard of them, but don't worry: by the end of this article, you'll know everything there is to know about these important indicators!

Bollinger Bands

Bollinger Bands were developed by renowned technical trader John Bollinger and consist of a pair of trendlines that are plotted two standard deviations (positively and negatively) away from the simple moving average (SMA) of a given security's price. Their purpose is to provide investors with a higher probability of properly identifying overbought or oversold conditions. This makes them a perfect confirmation tool to complement an analysis of the RSI or MACD.

The formula for calculating them is pretty complex, but luckily for us, the Libertex platform can calculate and automatically apply the bands, as well as additional oscillators expressing the width and percentage disparity between the upper and lower bands. Here's what the one-year Apple (AAPL) chart looks like with all three overlaid:

1_4.png


But how do they help us trade?

The established doctrine among traders is that the closer prices move to the upper band, the more overbought the market is. Conversely, prices moving towards the lower band signal oversold conditions. Beyond this, a widening of bands signals increased volatility, while a contraction is a sign of lower volatility. This is because standard deviation is itself a measure of volatility.

The major leading signal with Bollinger Bands is a phenomenon known as "The Squeeze". This is when the bands come closer together, which indicates decreasing volatility and the existence of potential opportunities for opening trades. On the other hand, a widening of the bands is seen as a sign of increasing volatility and — depending on what the RSI is indicating — is often interpreted as a signal to close out positions or reassess take-profit levels.

Let's take a look at the AAPL chart once more:

2_0.png


See the green circles? These indicate a sudden tightening of the bands. A short time after this, we see significant swings to the upside, which would indicate that the squeeze represents an optimum entry point for a long position.

What about when to sell?

This is a little trickier and requires a combination of indicators for any degree of certainty as to when a decline is imminent. Indeed, even John Bollinger himself states that his bands are not intended to be used as a standalone leading indicator and must be combined with several other technical analysis tools to provide reliable, actionable signals. Nonetheless, we will attempt to show their utility even when combined with just the RSI we looked at last week. Luckily, the Libertex in-app technical analysis suite makes this a breeze.

Simply go into full-screen mode on the chart and follow the instructions from last week to add the RSI (click on the indicators tab, hover over 'Oscillators' and select the RSI). Then, do the same again and add the Bollinger Bands as shown below:

3_1.png


Now, as we mentioned earlier: a widening of the bands is a good sign that market volatility is increasing and a fall could be on the cards. The problem is that these widenings are generally much more protracted and less clearly defined compared to the contractions. This means that we can potentially miss out on a lot of upside movement if we close out positions at the first sign of widening, as shown by the yellow circles below:

4_1.png


Notice how long the periods of widening (volatility) are? This is because the rising prices associated with the uptrend itself represent significant volatility compared to the trailing 20-day SMA, so it's hard to determine at what point the width represents a truly overbought market.

However, if we incorporate the RSI (peaks circled in blue) into our analysis, we see that these are much more precise as a leading indicator. By combining the two together (peak of the RSI and pronounced widening of Bollinger bands), we can predict future price declines much more accurately. This is why Bollinger himself recommends joint analysis using non-correlated tools such as the RSI and MACD.

Expand your knowledge with Libertex

Hopefully, you enjoyed this latest instalment in our technical analysis trading series. Given the interoperability of Bollinger's eponymous indicator with the key trend oscillators we looked at last week, you should now be able to refine your technical analysis skills further and generate even more accurate trading signals at home. If you're feeling confident in your abilities after these two tutorials, you could consider trying them out on a live position. For the more risk-averse, this week could be another great opportunity to test them out in your Demo account.
 

Libertex

Fun Poster
Messages
215
Joined
Mar 28, 2017
Messages
215
Reaction score
0
Points
10
AMC Stock Forecast

As the largest movie theatre chain in the world, AMC has been popular as a global investment option, offering its shareholders the opportunity to benefit from the $18 billion US theatre industry. Despite the hit the entire sector has taken due to COVID-19, AMC's shares are still soaring.

Learn what makes AMC stand out among its competitors, how its stock price is defined, AMC's past performance on the New York Stock Exchange and the price target consensus for 2022 by experts. After that, we'll provide an analysis of AMC's future.

About AMC Stock

Founded in 1920, AMC Entertainment Holdings, Inc. is an American multinational movie theatre chain and the largest movie theatre chain worldwide. Headquartered in Leawood, Kansas, in the United States, it has the largest share of the US movie theatre market.

The company is involved in the cinema industry, which it conducts through its subsidiaries. It does so by owning, operating and having interests in theatres. AMC operates through two segments:
  • United States Markets, which focuses its operations specifically in New York, Washington D.C., Los Angeles, Chicago and Atlanta.
  • International Markets, which involves activity in countries that include Germany, the United Kingdom, Ireland, Estonia, Spain, Sweden, Denmark, Finland, Lithuania and more.
AMC's stock ticker on the NYSE is AMC. As of 24 December 2021, its current share price is $20.57. It has an impressive market capitalisation of approximately $10 billion and has a volume of $49.59 million. The year range for the cost of one AMC share is $2.27 to $62.55. This extreme difference is partly due to the impact of the COVID-19 pandemic on the entertainment industry. Apart from this, the stock experienced a massive rally in mid-2021 as speculative trading began intensely owing to Reddit users.

What Affects AMC Stock Price?

The performance of AMC on the stock exchange depends on certain factors. While some of these have impacted AMC's stock price for decades, others are relatively and surprisingly new.

The regular factors include financing movies, producing films, legal and regulatory rules pertaining to theatre operations, supply chain issues and more.

At present, the ongoing COVID-19 pandemic is a major factor that can vastly move the price of AMC stock up or down. Since March 2020, when COVID-19 was declared a pandemic, the share prices have gone through many surges and dips. Thus, the revenue AMC can potentially bring in largely depends upon whether the situation with the virus will ease in the upcoming few months, allowing cinemas and theatres worldwide to operate at their full capacity. Similarly, growing trust in vaccination and approval of vaccines for children will also play a key role in this situation since movies for children can then be shown, as well.

These price indicators and other general economic factors are considered when analysts and industry experts create an AMC stock forecast.

AMC Stock Price in the Past

For most of its history, AMC's stock price has remained in the $15 to $35 bracket, as shown in the chart below.

amc-stock-forecast-1.jpg


  • The lowest recorded price is $2.27, which occurred in April 2020 due to the complete closing down of cinemas and theatres worldwide owing to the COVID-19 pandemic.
  • The highest recorded price is $62.55, which occurred in June 2021. This was after the cinemas were reopened after lockdowns were lifted across many parts of the world. It's interesting to note that although the virus brought the stock's price down drastically, the way it has increased since reopening has been astonishing, considering it has significantly soared past its previous high.
  • An interesting and highly notable surge in the price of AMC stock was recorded in May 2021 when enthusiastic Reddit users encouraged doubling down on the stock. In fact, this wild movement even helped AMC surpass GameStop as the most popular stock among Reddit WallStreetBets forums.
As a result, shares of AMC saw a gain of 1,100% in 2021 alone.

While it helps to know how AMC has performed in the last few years, this information can't be used on its own for accurate AMC price prediction.

AMC Stock Technical Analysis

When making any AMC stock forecast, the most useful metrics are technical indicators. The technical analysis reveals whether the stock should be bought, sold or held at any given moment or during a certain period. The charts below summarise the technical analysis for AMC stock for the upcoming month.

amc-stock-forecast-2.jpg


The indicators point towards buying the stock. Only four of them suggest selling, while twice that amount recommend buying. The rest of the indicators are at a neutral position for this 30-day period.

The individual analysis by the oscillators and moving averages is different, however. The moving averages say that AMC stock is a Buy. For oscillators, except Momentum (10) and MACD Level (12, 26), all technical indicators are pointing towards neutral.

Therefore, according to this technical analysis, it appears that the next few weeks are good for buying AMC stock or perhaps even holding it. However, this doesn't seem like an appropriate time at all for selling any shares you own. That being said, technical analysis depends on multiple indicators whose values keep changing regularly. Thus, before finalising any decision, make sure you consider the latest technical analysis.

AMC Stock Forecast for 2022 by Experts

What a senior analyst or an industry expert thinks about future performance can largely affect investor confidence in AMC stock. Mentioned below are some experts and how they predict 2022 will turn out for the international theatre giant. For 2022, most experts don't believe that AMC will make a remarkable recovery from its pandemic-induced loss. Therefore, there are many sell ratings among Wall Street analysts.

Chad Beynon

Chad Beynon, an analyst at the investment banking company Macquarie Group, downgraded AMC in September 2021, expecting the company to exhibit bearish performance on the stock exchange in 2022. The price quoted by Beynon was also shocking for some; at $6, his prediction brings down the value of AMC stock nearly four and half times from its current price. Beynon justified this decision by the fact that the film industry hasn't been able to recover to the pre-pandemic levels at a pace that can help AMC bring in notable revenue.

Michael Pachter

Michael Pachter, an analyst at the privately held investment firm Wedbush Securities, also downgraded the stock price for AMC in 2022 and changed his rating from 'neutral' to 'underperform'. Patcher gave a target price of $7.50, a drastically lower value than the current price inching closer to $30.

Note that forecasts and expert predictions can be wrong and aren't a substitute for proper research and due diligence on your end.

Short-Term AMC Price Prediction for 2022

Despite significant volatility lingering in this industry due to the pandemic, various artificial intelligence-based models and statistical tools have led to some reliable AMC price predictions for 2022.

Coin Price Forecast

According to estimates by Coin Price Forecast, AMC is expected to recover very well from the bearish movements in 2020 and early 2021. The forecasted price for mid-year is $34.52, whereas the year-end price is quoted to be $41.22. This is an extremely positive outlook that suggests confidence in AMC and the fact that the global entertainment industry is set to move past the obstacles brought on by the virus.

Long Forecast

Another optimistic outlook for 2022 comes from Long Forecast. It has released a bullish outlook for the company, with share prices increasing in most months to eventually reach a possible maximum value of $41.50 in December. This also reinforces the growing confidence among investors and traders alike regarding the comeback of cinemas and theatres.

While experts have rather bleak expectations about AMC stocks in 2022, predictions from statistics and models are revealing a very promising picture for the future of this entertainment leader. Take this as yet another reason not to stand by any prediction or rating, and always do your own homework before using your money for AMC stock.

AMC Stock Forecast for 2023-2025

The farther a time period is from the present, the less reliable predictions for it get. That being said, knowing a price target for AMC stock in the upcoming few years can help mitigate risks associated with investing and trading and facilitate the development of a trading or investment strategy.

Wallet Investor has given shockingly high estimates for the price of AMC from 2023 to 2025. Starting from $46.464 in January 2023, it expects the stock to have a bullish movement. This constant increase in the value is forecasted to lead AMC stock to close at $99.177 in December 2025.

Analysts usually refrain from giving out estimates so far ahead in time, and statistical models usually come up with very near-sighted estimates. Therefore, the least risky manner of making any decision regarding AMC stock is to study the details yourself or consult a professional.

Long-Term AMC Stock Price Prediction for 2026-2030

Wall Street analysts don't offer any predictions for the long-term status of stocks, but they can be made using artificial intelligence-based models. Below are AMC price predictions for 2026-2030 by various reliable sources.

Coin Price Forecast

Coin Price Forecast predicts that the price of AMC will follow an uptrend from 2026 onwards. Although these estimates don't depict any significant surge in price, those who are planning to hold their existing shares for the long term might be able to benefit from the expected gradual increase.

фыва.png


Wallet Investor

Wallet Investor has shown far more confidence in the future performance and earnings of AMC, as per its predictions. While many estimates have quoted a price over $100 only in 2029 or 2030, Wallet Investor has forecasted AMC's stock status to reach around $116.191 by just the end of 2026.

Conclusion

At present, the most important factor investors and traders are analysing to determine if they should buy, sell or hold AMC stock is the future state of the leisure and entertainment industry in the US and across the world. This, in turn, depends upon the circumstances surrounding the pandemic, vaccination efficacy and speed of administration and government regulations. If unforeseen circumstances don't appear, the share price is expected to grow slowly.

Before making any trading decision, you can test your strategies and learn useful tricks in a controlled environment, such as the one provided by Libertex. Create a demo account and practice trading CFDs on numerous underlying assets from all over the world.
 

Attachments

  • amc-stock-forecast-1.jpg
    amc-stock-forecast-1.jpg
    25.3 KB · Views: 2

Libertex

Fun Poster
Messages
215
Joined
Mar 28, 2017
Messages
215
Reaction score
0
Points
10
Tesla Stock Forecast: Will It Slide Deeper Into the Red?

While the past year was brutal for the manufacturing sector, Tesla (TSLA) not only managed to survive but also made history. The most significant milestones included the explosive growth to $2,000 per share, a stock split and acceptance into the S&P 500 index.

With that said, it's impossible to deny the challenges the EV maker is facing. Last year, Tesla orders nearly halved, and there were consumer complaints about safety and poor response to criticism.

Taking into account a stellar performance and controversial news, investors are divided. If you're also wondering what might come next for the stock, continue reading for Tesla stock predictions.

Is it a Buy, Hold or Sell? Is it a worthwhile addition to an investment portfolio? Find out the answer below and the context for the ratings given.

Brief Summary of Tesla's Stock (TSLA)

Tesla, Inc. operates in the automotive and energy generation and storage segments. The company designs, develops, manufactures and sells electric vehicles, grid-scale, solar panels and solar roof tiles.

Co-founder Elon Musk, J. B. Straubel and Jason Wheeler are three key management executives. Tesla's world-famous vehicle collection includes the Model 3 (four-door sedan), Model Y (sport utility vehicle), Model S (four-door sedan) and Model X (SUV). The Powerwall and Powerpack are the most popular products in the energy storage range.

1.png


The company was launched in 2003, but it was only in 2010 when Tesla's stock became publicly available. Tesla Motors launched its initial public offering (IPO) on NASDAQ on 29 June 2010. It was the first American car company to do so since the Ford Motor Company's IPO in 1956. With 13.3 million shares issued at the price of $17.00 per share, the company raised $226 million.

In 2020, Tesla's market capitalisation surpassed those of BMW, Daimler and Volkswagen combined. It even surpassed Toyota's $202 billion, becoming the world's most valuable automaker by market cap.

Factors Behind Tesla's Stock Price Fluctuations

Let's leave some fundamental factors aside, such as pandemic-related changes on the global scale and the political environment, which impact the entire market. We'll focus on Tesla specifically and how it plans to resolve its unique challenges.

Manufacturing Capabilities

Tesla moved forward to expand its manufacturing capabilities with plans to build 20 million EVs per year over the next decade. The newest additions would be a manufacturing factory near Berlin and one near Austin, Texas. As manufacturing scales up, the company can increase revenue and push its stock price up.

International Sales

Recently, Tesla deliveries in China excluding exports fell by two-thirds. This might reflect a weakening demand from the overseas markets. If the issue of international sales isn't resolved, it'll have a huge impact on Tesla's earnings and stock price.

Public Image

Tesla is facing fallout from its handling of various customer service complaints. For example, the company had a response on their Chinese social media page that trended for all the wrong reasons. A massive public outcry never goes unnoticed with similar stocks.

Also, Elon Musk is heavily associated with his company in the minds of investors; the company's success is in part connected to Musk's perceived success. This turned out to be both negative and positive for the stock.

Index Inclusion

The last factor on this list is the effect from S&P Dow Jones Indices on the Tesla share price forecast. Nearly $5.4 trillion in funds are indexed on the S&P 500. So, every time someone bets on the index, they also bet on Tesla, thus increasing demand for the stock. On top of that, liquidity is broadly picking up, which is a positive change for Tesla shares.

Past Performance of Tesla's Stock

For the first few years, TSLA's price stayed at around $5 and then jumped into the $30-$40 range in 2014.

The stock has had plenty of ups and downs along the way. For example, in August 2018, Elon Musk sparked deep controversy with a now-infamous tweet about taking Tesla private at $420. Interestingly, it didn't have a major effect on the stock price, which hovered around the $50-$60 range from 2017 to 2019.

tesla-stock-prediction-1.jpg


By December 2019, the share price reached $393.15 following reports that Tesla brought in $24.6 billion in revenue. As a volatile stock, TSLA suffered through the correction triggered by the COVID-19 crisis. As vehicles stopped coming off production lines, Tesla didn't have any revenue or margin.

On 31 August 2020, Tesla had a 5-for-1 stock split., followed by an increase in value from around $300 to nearly $440.

How Did Tesla Stock Perform in 2021?

TSLA started 2021 on a high note of around $880 and went through consolidation to around $600. Despite investor concerns about lacklustre results in the first half of the year, the uptrend from June to November made a statement. The highest 52-week price point was $1,243.49.

Taking a peek at 2022, we can already see a similar pattern: a rise to $1,199.78 and a setback to below $830.

tesla-stock-prediction-2.jpg


Tesla reported Q4 2021 results on 3 January 2022. As expected by Tesla's supporters, the company surpassed analysts' expectations and reported its best revenue growth in 10 quarters. Even those who hyped Tesla stock plenty in the past were astounded. The ascent might have come from the infusion of trillions of dollars of new money into the US economy and future earnings expectations.

Narrative aside, Tesla needs to justify such outsized enthusiasm. With the price trading under $850 at the start of February, there's still room for Tesla to prove its potential.

Short-Term Tesla Stock Prediction for 2022

Wall Street is turning bullish when it comes to Tesla in the short term. The fear of higher interest rates is still prevalent, but that doesn't stop analysts from increasing their price targets.

Wallet Investor predicts a consistent uptrend through 2022. Although the forecast starts from March, it's enough to gauge the overall movement and its intensity.

11.png


Long-Term Tesla Stock Forecast for 2025 and Beyond

Jumping to 2025, we have another positive forecast from Wallet Investor. In a few years, Tesla's stock might jump above $2,000. Over the year, the stock price might further increase from $2,100 to $2,500.

22.png


For a second opinion, here is the Tesla stock forecast for 2025 provided by Gov Capital.

33.png


Supporting the bull case, some experts see Tesla delivering 8 million vehicles per year by 2030 compared to 499,550 vehicles in 2020. On top of that, in the next decade, the company will become more than just a car producer. Only taking into account the value of EV sales overlooks all other businesses embedded in Tesla.

Tesla might also make a profound business model shift in the next few years. Sectors like software and connected services should start contributing significantly to their earnings.

With all that said, Tesla must be able to withstand growing competition with the following companies in 2025-2030:
  • Xpeng Motors
  • Volkswagen Group
  • BMW
  • Mercedes Benz
  • General Motors

Technical Analysis of Tesla Stock

Looking at the chart, Tesla's stock has reached its pre-pandemic levels. However, it rapidly went down throughout 2021 and is still yet to catch up to its early 2022 performance.

The technicals on the daily chart look bad, but the summary for the monthly chart is much more promising.

tesla-stock-prediction-3.jpg


Oscillators:
  • Relative Strength Index (14) - 61.18 - Neutral
  • Stochastic %K (14, 3, 3) - 70.08 - Neutral
  • Average Directional Index (14) - 48.24 - Neutral
  • Awesome Oscillator - 544.99 - Neutral
  • Momentum (10) - 178.42 - Sell
  • MACD Level (12, 26) - 201.03 - Buy
Moving averages:
  • Exponential Moving Average (50) - 431.98 - Buy
  • Simple Moving Average (50) - 315.51 - Buy
  • Exponential Moving Average (100) - 265.20 - Buy
  • Simple Moving Average (100) - 181.66 - Buy
tesla-stock-prediction-4.jpg


The chart above shows values from EMAs and the MACD indicator, which help identify key levels and price targets. This particular combination suggests two sell targets, $999 and $1,240 (although the stock can be held longer for potentially bigger returns) and two buy targets, $515 and $759.

Analysts' Ratings and Price Targets for Tesla Stock

Based on 12-month Tesla stock predictions by 31 Wall Street analysts, the stock has a Hold rating. It's an average of 7 Sell ratings, 8 Hold ratings and 16 Buy ratings. The price target range is very wide, so we'll need to look at a few specific firms and their recent release notes.

tesla-stock-prediction-5.jpg


Mark Delaney, Goldman Sachs

Robert W. Baird reissued their Buy rating on Tesla shares. The current price target from the firm is $1,200, which, at the time of issuing, had a medium effect on the share price.

Wells Fargo & Company

Morgan Stanley analyst Adam Jonas continues stock coverage with a Buy rating. The price target is currently at $1,300 a share (up from $1,200). Jonas also predicts that Tesla will continue being a stronger player as the EV marathon wears on.

Philippe Houchois, Jefferies

Jefferies has a Buy-equivalent rating on Tesla and a price target of $1,400. Analyst Philippe Houchois lifted his target price from the previous $950.

What Is Best for Tesla Stock: Trade vs Invest

Tesla's wild stock rally attracted many investors' attention. While some analysts are still sceptical about rapidly growing valuation and occasional dips. So far, investors that took the risk a few years prior have enjoyed hefty profits. On top of that, analysts and price predictions describe a rather positive set of events.

With that in mind, past performance doesn't guarantee future results. Tesla's stock can be volatile, and it can be hard to predict where Elon Musk will steer the company in the future.

While the company grows rapidly, the fastest way to potentially gain some profit might be through trading. This way, you can capitalise on price movements without making long-term investment commitments. Please note that trading CFDs with leverage can be risky and can lead to losing all of your invested capital. You can hold a long position, speculating that the TSLA price will rise, or a short position, speculating that it'll fall. In any case, you start learning about new tools and markets in a practice environment with a free Libertex demo account.
 

Libertex

Fun Poster
Messages
215
Joined
Mar 28, 2017
Messages
215
Reaction score
0
Points
10
Just how attractive is a long term, commission free investment with Libertex Invest?

Ever since the pandemic came and changed our lives forever, the financial markets have been seeing a huge influx of participants. Interestingly enough, though, these new entrants are coming for a potential profit but not looking to “get rich quick” through leveraged trading and meme investing. On the contrary, most of these predominantly young professionals are opting for a measured and regular long-term investment approach, depositing fixed sums each month in a bid to grow their capital in a sustainable and lower-risk fashion.

Noting the trend taking hold, multi-awarded online broker Libertex decided to create an entirely new account type in order to respond to the rising demand for lower-risk, unleveraged investment products for this future-minded wave of young investors. The brand new Libertex Invest account is available to all Libertex retail clients, and comes with a whole host of its unique features.

What makes Libertex Invest so unique?

Perhaps the most attractive feature of the Libertex Invest account is its zero commission, zero fee model. No commission, no SWAPs, no transaction charges. For those looking to make regular purchases of stocks over the long term, this could potentially become a great benefit and will help them save hundreds or even thousands in brokerage costs, which can then be reinvested for potential gains. Best of all, Libertex Invest clients have an option to choose stocks which generate dividends. They will be credited directly to clients’ Libertex Invest accounts and investors can also hold them for longer periods without worrying about overnight fees.

Libertex Invest includes all the big names like Amazon, Google, Apple and Tesla, with several industry options that range from the tech, automotive, industrial, healthcare, entertainment, medicinal cannabis and agrifood sectors. This means investors can build a highly diversified portfolio, minimizing risk while taking potential advantage of a large amount of upside.

Any fine print conditions?

It might seem like there’s some hidden catch. But really there isn’t! There are just a few small restrictions on the kinds of investments you can perform and that’s all. First, Libertex Invest users are only allowed to long positions on. They can’t sell short and they’re not allowed to trade Libertex’s other high-turnover asset classes CFDs. There are no stop loss, take profit and other pending orders with Libertex Invest either.

The idea is that these investments are to be held for months or even years and so the client will be able to close these positions at their leisure without the need for autonomous assistance. Last but by no means least, this new investment account does not offer “multipliers” or indeed leverage of any kind as the purpose of Libertex Invest is for investors to possibly grow capital with the minimum risks and not attempt to make multiples of one’s initial stake in a matter of days.

Build your own equities nest egg with Libertex Invest

Now that 2020-2021’s darling growth stocks have corrected more than 50%, the time is ripe to start building an equities nest egg. And with this incredible opportunity for commission-free investment, even the most committed day investors would be tempted to set aside a little each month for a rainy day. As savings account yields look set to remain well below inflation for the foreseeable future, a well-diversified,invest in quality stocks is a wise move – even more so when quality companies are available at knock-down prices. They say that the best time for investing for the long term is always yesterday and the next best is right now, but with today’s massive discounts on high growth stocks, there probably hasn’t been a better time since quite a few years ago.

Register your own Libertex account and see for yourself what makes it so unique!

The value of investment in stocks and shares can fall as well as rise, so you may get back less than you invested. Past performance is no guarantee of future results.

Jurisdictional limitations:
Libertex Invest is only available in EEA countries.
 

Libertex

Fun Poster
Messages
215
Joined
Mar 28, 2017
Messages
215
Reaction score
0
Points
10
Understanding Dividends

A vast majority of publicly listed companies regularly share their profits with their shareholders, a payment referred to as dividends. When a trade or investor searches for a company with high financial health to invest in, the dividend is an important part of their analysis and research.

This article offers an in-depth explanation of what dividends are, the reason why companies choose to pay their profits to shareholders, the various types of dividends and relevant dates regarding dividends. It also delves into the relationship between dividends and share prices before detailing dividend-paying companies.

If you want to get the gist of the article, scroll down to our FAQ section, which briefly covers significant details about dividends.

What Are Dividends?

Dividends are rewards, cash or otherwise, that a company pays to its investors who own its shares. When the company makes profits, it shares the profit with its shareholders in proportion to their investment in the company. This is one of the ways an investor can earn a return from the money they invest.

That being said, not all stocks pay dividends, so if you’re considering making a living off of dividends, you need to choose dividend stocks. Although dividends are usually paid four times a year, they can also be paid monthly or semi-annually. The company’s board of directors determines when a dividend is to be paid.

Although dividends, by their nature, are a regular payment to shareholders of a stock, they can be cut down during a financial crisis to preserve cash for the company.

Dividend Example

To further understand what dividends are, let’s consider an example. Suppose a public company announces a cash payment of $1 per share on its outstanding shares. The total outstanding shares of the company might be $3,000,000, for instance. This will make its dividends payable equal to $3,000,000.

Given below are the quarterly dividend payments by Apple Inc. in the year 2021. For the last three quarters of 2021, the tech giant issued cash dividends of $0.22 per share of its public stock.

ывапро.png


Why Do Companies Issue Dividends?

Listed companies have several options when they make profits. They can invest the capital to help their business grow further or buy back some of their shares on the open market. Why is it then that companies choose to pay dividends to their shareholders?
  • Paying dividends is a way for companies to express their gratitude to their investors for their support of the business.
  • Furthermore, it acts as an incentive to not only the current shareholders to continue holding stocks but also to potential investors to consider investing in a business that regularly pays dividends.
  • It also improves the reputation of a company since regular dividends are a sign of a company’s financial strength and confidence in its future performance.
How Do Dividends Work?

The decisions regarding a dividend are made by a company’s board of directors. The value of a dividend is determined on a per-share basis and shareholders belonging to the same class (for example, common and preferred) are paid equally.

Generally, these are the steps companies take.
  1. A company generates profits and retained earnings it does not need to utilise in the near future.
  2. The management makes a decision regarding the excess money: whether it should be reinvested or paid as a dividend to shareholders.
  3. The board of directors approves the issuance of dividends and other relevant details.
  4. The company announces the dividend on its declaration date along with information about the dividend, such as the value per share, payment date, etc.
  5. The dividend is paid to the shareholder on the payment date.
Types of Dividends

While the payment of dividends is essentially the disbursement of profits, a dividend may not always be in the form of money. A company can pay various types of dividends to its shareholders. Detailed below are some of the most common types of dividends.

Cash

The most common type of dividend, a cash dividend, refers to the payment of cash to shareholders as a return on their investment. This dividend is paid regularly, and the shareholders can choose to reinvest this money to increase their investment.

Stock

A stock dividend is provided by giving the shareholders additional stock. This usually happens when a company doesn’t have enough cash to pay its shareholders or has other preferences to invest its cash. If the company issues less than 25% of the previously issued stocks, it is considered as a stock dividend. If the issuance is more than 25% of the previously outstanding shares, it is treated as a stock split.

Asset

As dividends are not always monetary, companies can ever offer assets as dividends. An asset dividend is recorded against its current market price. Since this fair value is likely to be different from the book value of the asset, the company could either record it as an incurred loss or a gained profit. This means that companies can deliberately issue asset or property stocks to alter their taxable income.

Scrip

Essentially a note payable, this type of dividend is issued when a company doesn’t have sufficient funds to pay its shareholders. Instead, it offers a promissory note to pay the dividend amount at a later date.

Liquidating

If a company decides to return the original capital invested by its shareholders, it offers a liquidating dividend. This is not a regular dividend and usually occurs when a company is about to wind up its affairs.

Special

Special dividends payout on all shares of a company’s common stock. However, these are not paid like regular dividends and are often issued to distribute profits that have accumulated over the years and which do not need to be used immediately.

Impact of Dividends on Share Prices

After the declaration of a stock dividend, the share price often increases. Once dividends are distributed, share prices usually drop. Let’s examine the impact dividends have on share prices.

As mentioned earlier, regular payment of dividends signals the good financial health of a company and improves its goodwill and brand value. This is why as soon as a dividend is declared and its payable date is announced, investors are interested in buying the stocks. Hence, the prices of the shares increase since many want to buy them and are willing to pay high prices in order to get the dividends later on.

Conversely, after the ex-dividend date, the interest in a company’s stocks decreases because even if someone buys shares at that point, they would not be eligible for the dividend. Therefore, no one is willing to buy the shares at high prices since they wouldn’t be able to benefit from them. Thus, share prices usually fall after the ex-dividend date and even the payment date.

What Is Dividend Yield?

The dividend yield is a financial ratio, expressed as a percentage, which calculates how much a company pays out in dividends relative to its current stock price each year. Thus, a dividend yield is an annual rate. The dividend yield is calculated according to the following formula.

Dividend Yield = (Annual Dividends per Share / Current Share Price) * 100

If a company has declared the dividend per share of $1 and its current stock price is $25, its dividend yield will be equal to (1/25 = 0.04 or) 4%.

This formula also makes it clear that dividend yield can vary a lot over a certain period of time. Given that the dividend is kept constant, if the value of a stock rises, the dividend yield will fall. Conversely, if the value of a stock sharply decreases, the dividend yield will drastically rise.

What Are Qualified Dividends?

As the name suggests, qualified dividends have to meet certain requirements and conditions put in place by the Internal Revenue Service. Qualified dividends are taxable at the capital gains tax rate, whereas regular dividends are taxed at standard federal income tax rates. These are generally from shares in either domestic companies or qualifying foreign corporations and have to be held for a specific minimum period, which is termed the holding period.

Since the tax rates on qualified and ordinary dividends often vary a lot, it can make a significant difference to an investor when receiving one type of dividend over the other.

Which Companies Pay Dividends?

The highest dividend-paying companies are usually large, established corporations with predictable profits and expected growth in the future. Such companies aim to maximise their shareholders’ profits. Although a company from any industry or sector can regularly pay dividends, many companies from the following sectors have been noted to be regular dividend payers.
  • Oil and gas
  • Healthcare
  • Financial institutions
  • Utilities
  • Basic materials
In addition to this, companies that are structured as Master Limited Partnerships (MLPs) and Real Estate Investment Trusts (REITs) are also top dividend-paying companies since they are required to distribute their profits among their shareholders. Conversely, startups and other companies in their nascent stages might not be able to pay regular dividends owing to their high initial costs of running and expanding their business.

Dividend Dates to Look Out For

A company can decide to pay its dividends monthly, quarterly or even yearly. When it comes to dividend payment, the following three dates are important.

Declaration Date

This is the date when a company’s board or management team announces that a dividend will be paid. This is also called the "announcement date" and is not considered as important by investors as the other dividend dates.

Ex-Dividend Date

This refers to the date by which you must own a dividend-paying stock in order to be paid the dividend. This is usually one business day before a company decides whom to pay dividends to by checking its stockholder roster. If shares are bought on or after the ex-dividend date, the shareholder will not be eligible for the dividend. On the other hand, if shares are bought on or after this date, the dividend payment is still received.

Record Date

Shareholders are supposed to properly register their ownership of stocks by the record date in order to be eligible for the dividend. In most countries, the registration is automatic for shares purchased before the ex-dividend date.

Payment Date

This is the day when shareholders who held a dividend-paying stock on a company’s ex-dividend date receive their dividend payment. The dividend checks are mailed to shareholders or credited to brokerage accounts.

What Is the Difference Between a Dividend and a Buyback?

Now that we know what dividends are, let’s compare them to another financial term that comes into context when a company makes profits: buybacks. Also known as a "share repurchase", a buyback is when a company purchases its own outstanding shares in order to reduce its shares available in the stock market.

Dividends and buybacks have significant differences, as outlined in the table below.

267гне.png


Do Dividends Affect the Valuation of a Company?

Since dividends are not included in most of the metrics for valuing a company, they do not directly impact its valuation. However, that is not to say that it does not affect the valuation at all.

A company’s dividend activity and dividend yield move its stock price and affect investor sentiment, consequently impacting the company’s valuation. For instance, a high dividend might be taken as a positive signal that the company expects to grow and perform well, eventually increasing the valuation. Similarly, a dividend cut can be interpreted as a sign that the company is underperforming, which is likely to decrease its valuation.

Conclusion

Dividends are far more than just a reward from a company to its shareholders for their trust. Dividends can, at times, be a very steady stream of income for investors. However, to ensure this, one needs to exhaustively research the kind of stocks that offer regular dividends.

Dividends do not come without disadvantages and are not completely free money. Therefore, it is important to evaluate all of your options and be completely knowledgeable about dividends before putting your money into dividend-paying stocks.
 
Sponsored Post

Live Forex Chart

Currency
Rates
EUR / USD
1.02626
USD / JPY
133.437
GBP / USD
1.21418
USD / CHF
0.94159
USD / CAD
1.27763
EUR / JPY
136.940
AUD / USD
0.71267

CG Sponsors




Top
Log in Register